BP Signs Egypt LNG Agreement 

LONDON March 21, 2001 --BP announced today that it has signed an LNG agreement with the Egyptian General Petroleum Corporation and Eni.

The agreement provides for an LNG facility to be built at the Port of Damietta by BP and Eni. Under the agreement, BP and Eni have agreed to be the buyers of the LNG for sale into Mediterranean markets.

The agreement also establishes the terms and conditions for the price which BP and Eni will pay for gas supplied to the facility and sets out the commercial framework for the construction and ownership of the facility. Egyptian LNG is scheduled to be delivered to the markets in the second half of 2004.

Egypt's Petroleum Minister, Engineer Sameh Fahmy, described the agreement as "an important step towards establishing a major gas export facility for Egypt which will greatly help realise the Government's strategy of maximising the value of Egypt's gas while ensuring the domestic market is fully satisfied now and in the future. We are very pleased to have reached this agreement with two of the world's major oil and gas companies."

David Nagel, president and general manager for BP Egypt commented, "This project will help to secure continued growth in Egypt's upstream industry where BP has invested more than $9 billion over the past forty years. Egypt LNG is another example of BP's ability to bring new LNG sources to new customers around the world. In the past 12 months, we have secured markets for new LNG in the USA, the Caribbean and in Spain and we have new LNG ships under construction in Korea which can be deployed to bring early Egyptian gas to the international market."